90th General Assembly
Summary of SB0592
   [ Home ]   [ Back ]   [ Legislation ]
Legislation:  
Please enter a bill number.



 Full Text  Bill Status
Senate Sponsors:
PETERSON-SEVERNS-LINK-PARKER-WELCH, VIVERITO, JACOBS, 
   CLAYBORNE, BOWLES AND FARLEY.

House Sponsors:
KUBIK-KLINGLER-ERWIN

Short description: 
INC TX-BUSINESS INC-NON-RESDNT                                             

Synopsis of Bill as introduced:
        Amends the Illinois Income Tax Act.  Provides that  if  a  person      
   other  than  a  resident  derives  business income from this State and      
   others, the business income shall be  apportioned  to  this  State  by      
   multiplying  the  income  by  the sales factor (now by multiplying the      
   income by a fraction, the  numerator  of  which  is  the  sum  of  the      
   property  factor, the payroll factor, and 200% of the sales factor and      
   the denominator of which is 4 reduced by the number of  factors  other      
   than  the  sales  factor  which  have  a denominator of zero and by an      
   additional 2 if the sales factor has a denominator of zero).   Deletes      
   provisions in the definition of sales factor stating that sales are in      
   this  State  if  the  property  is  shipped  from  this  State and the      
   purchaser is the government or  is  otherwise  exempt  from  taxation.      
   Deletes  provision  stating  that  sales  are not in this State if the      
   seller and purchaser would be members of  the  same  unitary  business      
   group  but  for the fact that one of them is a person with 80% or more      
   of total business activity  outside  of  the  United  States  and  the      
   property  is  purchased  for  resale.   Provides  that  the  provision      
   excluding  dividends  and Subpart F income from the sales factor shall      
   apply to taxable years ending on  or  after  December  31,  1995  (now      
   taxable  years  ending  on  or  after  December 31, 1995 and excluding      
   taxable years ending after December 31, 1997).  Effective immediately.      
          FISCAL NOTE (Dept. of Revenue)                                       
          Adoption of a single apportionment formula based on sales would      
          lower revenue collections of Ill. corporate income tax receipts      
          by an estimated minimum $30 million, annually. Personal Proper-      
          ty Replacement Income Tax fund receipts will proportionately         
          decline an additional minimum of $16 million, annually. The          
          potential cost associated with SB 592 may be considerably high-      
          er if those companies outside of Ill. that are adversely             
          affected by the formula change successfully appeal to the Di-        
          rector claiming "income distortion" and retain the current           
          formula.                                                             
        SENATE AMENDMENT NO. 1.                                                
          Adds reference to:                                                   
          35 ILCS 5/804                   from Ch. 120, par. 8-804             
          35 ILCS 5/1501                  from Ch. 120, par. 15-1501           
        Deletes  everything.   Amends  the  Illinois  Income   Tax   Act.      
   Provides  that  for  tax  years  ending on or after December 31, 1997,      
   persons other than residents who  derive  business  income  from  this      
   State  and  one  or  more  other states shall apportion their business      
   income using a single factor sales formula.  Provides that this  sales      
   factor  shall be a fraction, the numerator of which is the total sales      
   of the  person  in  this  State  during  the  taxable  year,  and  the      
   denominator  of  which  is  the  total  sales of the person everywhere      
   during the taxable year.  Excludes  certain  amounts  from  the  sales      
   factor  for  taxable  years  ending  on  or  after  December 31, 1995.      
   Provides that no penalty shall be  imposed  for  failure  to  pay  the      
   estimated  tax due before the effective date of this amendatory Act if      
   the underpayments  are  solely  attributable  to  the  change  in  the      
   apportionment  of  income.   In  the  definition  of "unitary business      
   group", provides that if the members' accounting periods  differ,  the      
   common  parent's  accounting  period, or if there is no common parent,      
   the accounting period of the member that is expected  to  have,  on  a      
   recurring  basis,  the  greatest Illinois income tax liability must be      
   used to determine which apportionment method to  use.   Provides  that      
   the  provisions of this amendatory Act apply to tax years ending on or      
   after December 31, 1997.  Effective immediately.                            
        SENATE AMENDMENT NO. 2.                                                
        Adds an introductory clause.                                           
 
Last action on Bill: SESSION SINE DIE

   Last action date: 99-01-12

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   0     SENATE -   2


   END OF INQUIRY 
                                                                               



 Full Text  Bill Status